Chubb Needn't Cover $8M Grubhub Text-Ad Deal, Court Says

Law360 (May 1, 2018, 5:48 PM EDT) -- A New York federal court on Monday ruled that a Chubb Ltd. unit doesn't have to cover an $8 million settlement between Grubhub and a proposed class of consumers suing over mass texts, agreeing with the insurer that a pair of policy exclusions bar coverage.

In April 2017, lead plaintiff Victoria Flores reached the $8 million deal with Grubhub Seamless Inc. in her suit alleging violations of the Telephone Consumer Protection Act. The food delivery service agreed to a consent judgment, but rather than paying any of the settlement itself, the company simply assigned its rights in a digital technology and...

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